NEWARK
- A distribution plan that provides $5.15
million to investors who were defrauded by
Robert Brennan has been approved, marking
a significant milestone to a case the New
Jersey Bureau of Securities began in 1995.

Defrauded
investors can submit a claim to the receiver
who is implementing the distribution plan,
following approval of the plan in State Superior
Court.

The
Bureau of Securities in August, 1995 filed
suit against Brennan and L.C. Wegard, an investment
firm which Brennan controlled, and other defendants,
alleging violations of the New Jersey Securities
Law and the New Jersey Racketeer Influenced
and Corrupt Organizations (RICO) Act. Brennan
that same month filed a voluntary Chapter
11 bankruptcy petition. In June, 1999, the
Bureau obtained a $45 million non-dischargeable
judgment against Brennan and L.C. Wegard.

A
protracted effort to find assets to satisfy
the judgment then began, as Brennan claimed
he did not have assets. Ultimately, Bureau
investigators tracked down assets which Brennan
had attempted to hide. A pension fund that
Brennan had set up for himself was among the
assets seized.

“The
Bureau of Securities is working with the receiver
and other securities industry regulators in
the massive undertaking to inform the estimated
27,000 affected investors of this distribution
plan,” said Marc B. Minor, Bureau Chief.
“We want to get as much of the recovered
funds as possible into the hands of these
long-suffering investors.”

L.C.
Wegard customers during the period October
1, 1991 to September, 1994 may be qualified
to file a claim if they purchased any of the
following securities during this time period:

If
the above criteria are met, investors can
obtain a “Proof of Claim” online
at www.mercadienclaimsadministration.com or
by writing to: Donald F. Conway, Receiver,
P.O. Box 8329, Princeton, N.J. 08543-8329.

L.C.
Wegard had offices in a number of states including
New Jersey, Pennsylvania, New York, Rhode
Island and Illinois. The North American Securities
Administrators Association has agreed to work
with regulators in these states in an effort
to publicize information about the distribution
plan to affected investors.

Deputy
Attorney General Anna M. Lascurain, Chief
of the Securities Fraud Section, represented
the Bureau in this matter.